The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from PR Newswire

MGM Resorts International Reports Third Quarter Results

Wednesday, October 31, 2012

MGM Resorts International Reports Third Quarter Results08:30 EDT Wednesday, October 31, 2012LAS VEGAS, Oct. 31, 2012 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) today reported its third quarter 2012 results. Net loss per share attributable to the Company was $0.37 compared to a loss of $0.25 in the prior year third quarter. Comparability of the current and prior year quarterly consolidated results was affected by certain items discussed further below. Key results for the third quarter of 2012 include the following:Consolidated net revenue increased 1% to $2.3 billion, driven by a 7% increase in MGM China's net revenue; Consolidated casino revenue increased 4%, representing a 7% increase at MGM China and a 2% increase at the Company's wholly owned domestic resorts; Rooms revenue decreased 3%, primarily due to a 2% decrease in REVPAR(1) at the Company's Las Vegas Strip resorts; The Company's wholly owned domestic resorts earned Adjusted Property EBITDA(2) of $325 million, a 7% decrease compared to the prior year quarter; MGM China reported record third quarter Adjusted EBITDA of $152 million which included $5 million of branding fee expense. Excluding branding fees, Adjusted EBITDA increased 5% compared to the prior year quarter; and CityCenter reported Adjusted EBITDA from resort operations of $59 million, an 18% increase from the prior year quarter."Our third quarter operating results are reflective of a challenging consumer environment, but we had some bright spots with strong results from MGM Grand Las Vegas and The Mirage and record third quarters from MGM China and CityCenter," said Jim Murren, Chairman and CEO of MGM Resorts International. "We have achieved a great milestone with MGM China by accepting the formal land concession agreement and look forward to continuing to make progress towards a second resort and casino in Macau. Meanwhile, early fourth quarter trends are improving at our domestic resorts and forward convention booking pace is showing growth in 2013 and is further accelerating into 2014." Certain Items Affecting Third Quarter ResultsThe following table lists items that affect the comparability of the current and prior year quarterly results (approximate diluted per share impact on net income (loss) attributable to MGM Resorts International, net of tax; negative amounts represent charges to income):Three months ended September 30,20122011Property transactions, net:     Circus Circus Reno impairment charge    $      ?$  (0.11)     Other property transactions, net                 (0.01)?Income (loss) from unconsolidated affiliates:     CityCenter residential impairment charge     (0.02)?     CityCenter Harmon demolition cost     (0.02)?Income tax provision:     Deferred tax valuation allowance     (0.09)?Current quarter results were affected by a valuation allowance for a portion of U.S. deferred tax assets and the Company's share of CityCenter's non-cash residential impairment charge related to Mandarin Oriental and estimated costs accrued for the demolition of the Harmon. The prior year quarter included an impairment charge of $80 million related to Circus Circus Reno.Wholly Owned Domestic Resorts Net revenues related to wholly owned domestic resorts decreased 2% to $1.5 billion. Casino revenue increased 2% compared to the prior year quarter. The overall table games hold percentage in the third quarter of 2012 was 20.4% compared to 19.5% for the prior year third quarter. Table games hold at the Bellagio was significantly below normal but was offset by other Las Vegas Strip resorts. Slots revenue increased 1% compared to the prior year quarter. Rooms revenue decreased 3% with Las Vegas Strip REVPAR down 2%.  The following table shows key hotel statistics for the Company's Las Vegas Strip resorts:Three months ended September 30,              20122011Occupancy %         92%95%Average Daily Rate (ADR)    $    124$   124Revenue per Available Room (REVPAR)     $    114$   117Operating income for the Company's wholly owned domestic resorts for the third quarter of 2012 was $195 million compared to $130 million in the prior year quarter.  The prior year quarter included an $80 million impairment charge related to Circus Circus Reno.  Adjusted Property EBITDA for wholly owned domestic resorts decreased 7% to $325 million for the third quarter of 2012.  Corporate expense increased by approximately $19 million during the current quarter, largely as a result of approximately $17 million of costs associated with the ongoing referendum in Maryland and development efforts in Massachusetts and Toronto.MGM ChinaKey third quarter results for MGM China include the following:MGM China earned net revenue of $665 million, a 7% increase over the prior year quarter driven by increases in volume for main floor table games and slots of 10% and 37%, respectively. VIP table games turnover decreased 5% from the prior year quarter, while hold percentage was 3.0% in the current year quarter compared to 2.9% in the prior year quarter; and MGM China's operating income was $61 million and Adjusted EBITDA was $152 million.   Branding fee expense was $5 million in the current year quarter, as the annual branding fee cap was reached in August, compared to $11 million in the prior year quarter. Adding back the branding fees in both periods, Adjusted EBITDA increased 5%.As previously announced, MGM China, through its wholly owned subsidiary MGM Grand Paradise S.A. ("MGM Grand Paradise"), formally accepted a land concession contract with the Macau government in October 2012 and received approval to develop a five-star luxury resort and casino in Cotai, Macau.  The contract will not become effective until the Macau government publishes it in the Official Gazette of Macau (the "Publication Date").  The initial term of the contract is 25 years from the Publication Date and MGM Grand Paradise is required to complete the development of the land within 60 months of the Publication Date.  The total land premium payable to the Macau government is approximately $161 million.  In addition to the land premium payment, MGM Grand Paradise is required to pay an annual rent to the Macau government.In October 2012, MGM China and MGM Grand Paradise, as co-borrowers, entered into an amended and restated credit facility agreement which consists of $550 million of term loans and a $1.45 billion revolving credit facility due October 2017.  The interest rate on the facility will fluctuate based on HIBOR plus a margin, set at 2.5% for the first six months and ranging between 1.75% and 2.5% thereafter based on MGM China's leverage ratio. The credit facility will be used for general corporate purposes and for the development of the proposed Cotai development.Income (Loss) from Unconsolidated AffiliatesThe following table summarizes the Company's income (loss) from unconsolidated affiliates:Three months ended September 30,20122011(In thousands)CityCenter   $   (42,814)$   (7,723)Other        4,8718,262$   (37,943)$        539The Company's share of CityCenter's operating losses in the current year quarter includes $18 million related to a residential impairment charge and $16 million related to the accrual of estimated costs for the future demolition of the Harmon. Results for CityCenter Holdings, LLC for the third quarter of 2012 include the following (see schedules accompanying this release for further detail on CityCenter's third quarter results): Net revenue from resort operations increased 3% to $263 million; Adjusted EBITDA from resort operations was $59 million, an increase of 18% compared to $50 million in the prior year quarter; Aria's table games hold percentage for the third quarter of 2012 was 29.3% compared to 25.5% for the prior year quarter.  The estimated effect of the increase in hold percentage compared to the prior year quarter for Adjusted EBITDA was $8 million; Aria's occupancy percentage was 88% and its ADR was $192, resulting in REVPAR of $170, a 2% decrease compared to the prior year third quarter; and CityCenter recorded approximately $36 million for a residential impairment charge related to the Mandarin Oriental and $32 million for accrued costs related to the future demolition of the Harmon within "Property transactions, net." Financial PositionThe Company's cash balance at September 30, 2012 was $2.4 billion, which included approximately $936 million of cash and cash equivalents related to MGM China.  At September 30, 2012, the Company had approximately $13.9 billion of indebtedness (with a carrying value of $13.8 billion) including $1.3 billion of borrowings outstanding under its senior credit facility and $539 million related to the MGM China credit facility. In September, the Company issued $1.0 billion of 6.75% senior notes due 2020, for net proceeds to the Company of approximately $986 million.At September 30, 2012, the Company's senior credit facility consisted of approximately $820 million in term loans and a $1.3 billion revolver (approximately $360 million of which has not been extended and matures in February 2014) and had approximately $855 million of available borrowing capacity. The interest rate on extending loans was 5% at September 30, 2012.  Interest on non-extending revolving loans remains at 7%. "We have opportunistically accessed the capital markets enabling us to extend maturities at lower borrowing rates. Our most recent senior notes issuance was done at the lowest interest rate we have achieved since 2006.  We remain focused on executing additional transactions to further reduce our interest expense and improve free cash flow," said Dan D'Arrigo, Executive Vice President, CFO and Treasurer of MGM Resorts International. Conference Call DetailsMGM Resorts International will host a conference call at 11:00 a.m. Eastern Time today which will include a brief discussion of these results followed by a question and answer period. The call will be accessible via the Internet through www.mgmresorts.com under the investors section or by calling 1-877-355-2280 for domestic callers and 1-706-758-3659 for international callers.  The conference call access code is 30530814. A replay of the call will be available through Wednesday, November 7, 2012. The replay may be accessed by dialing 1-855-859-2056 or 1-404-537-3406. The replay access code is 30530814. The call will also be archived at www.mgmresorts.com1      REVPAR is hotel revenue per available room. 2      "Adjusted EBITDA" is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, property transactions, net and the gain on the MGM China transaction.  "Adjusted Property EBITDA" is Adjusted EBITDA before corporate expense and stock compensation expense related to the MGM Resorts stock option plan, which is not allocated to each property. MGM China recognizes stock compensation expense related to its stock compensation plan which is included in the calculation of Adjusted EBITDA for MGM China.  Adjusted EBITDA information is presented solely as a supplemental disclosure to reported GAAP measures because management believes these measures are 1) widely used measures of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies.  Management believes that while items excluded from Adjusted EBITDA and Adjusted Property EBITDA may be recurring in nature and should not be disregarded in evaluation of the Company's earnings performance, it is useful to exclude such items when analyzing current results and trends compared to other periods because these items can vary significantly depending on specific underlying transactions or events that may not be comparable between the periods being presented. Also, management believes excluded items may not relate specifically to current operating trends or be indicative of future results. For example, preopening and start-up expenses will be significantly different in periods when the Company is developing and constructing a major expansion project and will depend on where the current period lies within the development cycle, as well as the size and scope of the project(s). Property transactions, net includes normal recurring disposals, gains and losses on sales of assets related to specific assets within the Company's resorts, but also includes gains or losses on sales of an entire operating resort or a group of resorts and impairment charges on entire asset groups or investments in unconsolidated affiliates, which may not be comparable period over period. In addition, capital allocation, tax planning, financing and stock compensation awards are all managed at the corporate level. Therefore, management uses Adjusted Property EBITDA as the primary measure of the Company's operating resorts' performance. Reconciliations of GAAP net income (loss) to Adjusted EBITDA and GAAP operating income (loss) to Adjusted Property EBITDA are included in the financial schedules in this release.About MGM Resorts InternationalMGM Resorts International (NYSE: MGM) is one of the world's leading global hospitality companies, operating a peerless portfolio of destination resort brands, including Bellagio, MGM Grand, Mandalay Bay and The Mirage.  In addition to its 51% interest in MGM China Holdings, Limited, which owns the MGM Macau resort and casino and is in the process of developing a gaming resort in Cotai, the Company has significant holdings in gaming, hospitality and entertainment, owns and operates 15 properties located in Nevada, Mississippi and Michigan, and has 50% investments in three other properties in Nevada and Illinois. One of those investments is CityCenter, an unprecedented urban resort destination on the Las Vegas Strip featuring its centerpiece ARIA Resort & Casino. Leveraging MGM Resorts' unmatched amenities, the M life loyalty program delivers one-of-a-kind experiences, insider privileges and personalized rewards for guests at the Company's renowned properties nationwide. Through its hospitality management subsidiary, the Company holds a growing number of development and management agreements for casino and non-casino resort projects around the world. MGM Resorts International supports responsible gaming and has implemented the American Gaming Association's Code of Conduct for Responsible Gaming at its gaming properties. The Company has been honored with numerous awards and recognitions for its industry-leading Diversity Initiative, its community philanthropy programs and the Company's commitment to sustainable development and operations. For more information about MGM Resorts International, visit the Company's website at www.mgmresorts.com.Statements in this release that are not historical facts are forward-looking statements involving risks and/or uncertainties, including those described in the company's public filings with the Securities and Exchange Commission.  We have based forward-looking statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, statements regarding future operating results and our ability to execute additional transactions to further reduce our interest expense and improve free cash flow. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include effects of economic conditions and market conditions in the markets in which we operate and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in our Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports).  In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. MGM RESORTS INTERNATIONAL AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data)(Unaudited)Three Months EndedNine Months EndedSeptember 30,September 30,September 30,September 30,2012201120122011Revenues:Casino$     1,294,318$    1,241,959$     3,928,548$    2,629,674Rooms393,055405,1731,205,4411,170,301Food and beverage361,252369,4841,126,0961,078,268Entertainment123,168132,350364,477382,037Retail51,21155,509149,921155,951Other127,567128,204373,590371,253Reimbursed costs87,68287,144269,159262,9142,438,2532,419,8237,417,2326,050,398Less: Promotional allowances(183,275)(186,236)(550,899)(497,975)2,254,9782,233,5876,866,3335,552,423Expenses:Casino826,072795,6522,519,7571,632,382Rooms128,546125,864384,598366,736Food and beverage209,686214,412643,892628,559Entertainment92,88896,889270,235279,605Retail29,06432,64185,88894,279Other88,61690,021263,673256,710Reimbursed costs87,68287,144269,159262,914General and administrative319,106304,049931,873875,193Corporate expense62,99243,523147,792120,024Preopening and start-up expenses 765-765(316)Property transactions, net5,80381,83797,18782,828Gain on MGM China transaction---(3,496,005)Depreciation and amortization228,414249,520700,866579,3842,079,6342,121,5526,315,6851,682,293Income (loss) from unconsolidated affiliates(37,943)539(45,266)95,909Operating income 137,401112,574505,3823,966,039Non-operating income (expense):Interest expense, net of amounts capitalized(275,771)(272,542)(836,436)(812,680)Non-operating items from unconsolidated affiliates(20,901)(24,692)(68,603)(92,984)Other, net2,012(1,595)(55,518)(18,567)(294,660)(298,829)(960,557)(924,231)Income (loss) before income taxes(157,259)(186,255)(455,175)3,041,808Benefit for income taxes2,58579,68026,760212,437Net income (loss)(154,674)(106,575)(428,415)3,254,245Less: net income attributable to noncontrolling interests(26,485)(17,211)(115,449)(25,917)Net income (loss) attributable to MGM Resorts International$       (181,159)$      (123,786)$       (543,864)$    3,228,328Per share of common stock:Basic:Net income (loss) attributable to MGM Resorts International$             (0.37)$            (0.25)$             (1.11)$             6.61Weighted average shares outstanding488,945488,636488,913488,595Diluted:Net income (loss) attributable to MGM Resorts International$             (0.37)$            (0.25)$             (1.11)$             5.83Weighted average shares outstanding488,945488,636488,913558,544 MGM RESORTS INTERNATIONAL AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In thousands, except share data)(Unaudited)September 30,December 31,20122011      ASSETSCurrent assets:Cash and cash equivalents$      2,443,159$      1,865,913Accounts receivable, net412,390491,730Inventories107,772112,735Deferred income taxes, net140,83191,060Prepaid expenses and other243,665251,282                 Total current assets3,347,8172,812,720Property and equipment, net14,765,34914,866,644Other assets:Investments in and advances to unconsolidated affiliates1,488,6621,635,572Goodwill 2,901,2732,896,609Other intangible assets, net4,813,1835,048,117Other long-term assets, net515,077506,614                 Total other assets9,718,19510,086,912$    27,831,361$    27,766,276LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable$         201,150$         170,994Income taxes payable3587,611Accrued interest on long-term debt249,676203,422Other accrued liabilities1,574,6701,362,737                 Total current liabilities2,025,8541,744,764Deferred income taxes 2,527,8282,502,096Long-term debt13,825,45113,470,167Other long-term obligations186,725167,027Stockholders' equity:Common stock, $.01 par value: authorized 1,000,000,000 shares,   issued and outstanding 488,955,913 and 488,834,773 shares 4,8904,888Capital in excess of par value4,098,3224,094,323Retained earnings 1,437,5251,981,389Accumulated other comprehensive income 12,5335,978Total MGM Resorts International stockholders' equity5,553,2706,086,578Noncontrolling interests3,712,2333,795,644                 Total stockholders' equity9,265,5039,882,222$    27,831,361$    27,766,276 MGM RESORTS INTERNATIONAL AND SUBSIDIARIESSUPPLEMENTAL DATA - NET REVENUES(In thousands)(Unaudited)Three Months EndedNine Months EndedSeptember 30,September 30,September 30,September 30,2012201120122011Bellagio$        259,501$        275,884$        840,233$            805,892MGM Grand Las Vegas239,713243,037702,589707,618Mandalay Bay183,466199,166555,857587,525The Mirage 162,920140,989457,388433,912Luxor81,34388,203247,986252,420New York-New York 67,16668,449206,807202,147Excalibur66,80967,831197,808196,341Monte Carlo64,42565,321195,788193,602Circus Circus Las Vegas56,80756,559158,606149,694MGM Grand Detroit139,284139,049431,676425,189Beau Rivage91,70489,713265,254261,448Gold Strike Tunica39,78940,415115,797108,485Other resort operations33,22834,75995,19296,840  Wholly owned domestic resorts1,486,1551,509,3754,470,9814,421,113MGM China(1)665,074623,0502,076,460816,034Management and other operations103,749101,162318,892315,276$     2,254,978$     2,233,587$     6,866,333$         5,552,423(1) For the nine months ended September 30, 2011, represents the net revenues of MGM China Holdings Limited ("MGM China") from June 3, 2011 (the first day of the Company's majority ownership of MGM China) through September 30, 2011.MGM RESORTS INTERNATIONAL AND SUBSIDIARIESSUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDA(In thousands)(Unaudited)Three Months EndedNine Months EndedSeptember 30,September 30,September 30,September 30,2012201120122011Bellagio$          54,133$          74,251$        207,929$            205,522MGM Grand Las Vegas48,37842,221114,735114,646Mandalay Bay34,39241,372120,605129,417The Mirage 39,50725,40691,99382,145Luxor15,71721,06551,42660,020New York-New York 20,95422,73868,92966,089Excalibur15,39417,46348,69851,974Monte Carlo13,15014,46644,55443,870Circus Circus Las Vegas8,3228,89821,61120,524MGM Grand Detroit39,26439,897124,840125,593Beau Rivage22,72225,50159,17357,925Gold Strike Tunica11,04113,46433,66221,219Other resort operations1,7908522,739(2)  Wholly owned domestic resorts324,764347,594990,894978,942MGM China(1)152,491139,326503,572185,748MGM Macau (50%)(2)---115,219CityCenter (50%)(3)(42,814)(7,723)(60,745)(46,029)Other unconsolidated resorts(3)4,8718,26215,47926,719Management and other operations(409)4,63714,3946,159$        438,903$        492,096$     1,463,594$         1,266,758(1) For the nine months ended September 30, 2011, represents the Adjusted EBITDA of MGM China Holdings Limited ("MGM China") from June 3, 2011 (the first day of the Company's majority ownership of MGM China) through September 30, 2011.(2) Represents the Company's share of operating income (loss), adjusted for the effect of certain basis differences for the approximately five months ended June 2, 2011.(3) Represents the Company's share of operating income (loss), adjusted for the effect of certain basis differences.   MGM RESORTS INTERNATIONAL AND SUBSIDIARIESRECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA AND ADJUSTED EBITDA(In thousands)(Unaudited)                         Three Months Ended September 30, 2012Operatingincome (loss)Preopening and start-up expensesProperty transactions, netDepreciation and amortizationAdjusted EBITDABellagio$          30,454$                     -$                       52$          23,627$          54,133MGM Grand Las Vegas24,375-3,49720,50648,378Mandalay Bay15,251-39218,74934,392The Mirage 25,949-54113,01739,507Luxor6,076-7658,87615,717New York-New York 15,619-1485,18720,954Excalibur11,016--4,37815,394Monte Carlo8,332-94,80913,150Circus Circus Las Vegas3,541--4,7818,322MGM Grand Detroit30,206641378,38039,264Beau Rivage15,129-(78)7,67122,722Gold Strike Tunica7,825-13,21511,041Other resort operations1,176-(8)6221,790  Wholly owned domestic resorts194,9496415,356123,818324,764MGM China60,527-42691,538152,491CityCenter (50%)(42,938)124--(42,814)Other unconsolidated resorts4,871---4,871Management and other operations(3,574)--3,165(409)213,8357655,782218,521438,903Stock compensation(7,897)---(7,897)Corporate (68,537)-219,893(58,623)$        137,401$               765$                 5,803$        228,414$        372,383                         Three Months Ended September 30, 2011Operatingincome (loss)Preopening and start-up expenses Property transactions, netDepreciation and amortizationAdjusted EBITDABellagio$          50,943$                     -$                   503$          22,805$          74,251MGM Grand Las Vegas22,945-119,27542,221Mandalay Bay19,313-5322,00641,372The Mirage 6,708-1,29117,40725,406Luxor11,775-29,28821,065New York-New York 17,043--5,69522,738Excalibur12,477-134,97317,463Monte Carlo9,209-55,25214,466Circus Circus Las Vegas4,192-24,7048,898MGM Grand Detroit29,991--9,90639,897Beau Rivage15,614-(7)9,89425,501Gold Strike Tunica10,083--3,38113,464Other resort operations(79,990)-79,6581,184852  Wholly owned domestic resorts130,303-81,521135,770347,594MGM China40,788-29498,244139,326CityCenter (50%)(7,723)---(7,723)Other unconsolidated resorts8,262---8,262Management and other operations1,000-63,6314,637172,630-81,821237,645492,096Stock compensation(8,707)---(8,707)Corporate (51,349)-1611,875(39,458)$        112,574$                     -$             81,837$        249,520$        443,931 MGM RESORTS INTERNATIONAL AND SUBSIDIARIESRECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDA AND ADJUSTED EBITDA(In thousands)(Unaudited)Nine Months Ended September 30, 2012Operatingincome (loss)Preopening and start-up expensesProperty transactions, netDepreciation and amortizationAdjusted EBITDABellagio$          135,874$                     -$                     406$          71,649$        207,929MGM Grand Las Vegas50,796-4,62759,312114,735Mandalay Bay60,817-93758,851120,605The Mirage 52,691-61138,69191,993Luxor23,691-95026,78551,426New York-New York 52,318-39116,22068,929Excalibur35,407-313,28848,698Monte Carlo29,235-56714,75244,554Circus Circus Las Vegas7,079-7714,45521,611MGM Grand Detroit94,97564192128,303124,840Beau Rivage36,252-(70)22,99159,173Gold Strike Tunica23,758-39,90133,662Other resort operations958-(22)1,8032,739  Wholly owned domestic resorts603,8516419,401377,001990,894MGM China218,869-1,890282,813503,572CityCenter (50%)(60,869)124--(60,745)Other unconsolidated resorts15,479---15,479Management and other operations3,692--10,70214,394781,02276511,291670,5161,463,594Stock compensation(25,998)---(25,998)Corporate (249,642)-85,89630,350(133,396)$          505,382$               765$               97,187$        700,866$     1,304,200Nine Months Ended September 30, 2011Operatingincome (loss)Preopening and start-up expensesGain on MGM China transaction and Property transactions, netDepreciation and amortizationAdjusted EBITDABellagio$          132,489$                     -$                     820$          72,213$        205,522MGM Grand Las Vegas56,837-157,808114,646Mandalay Bay63,365-6965,983129,417The Mirage 35,123-1,33045,69282,145Luxor31,599-828,41360,020New York-New York 48,325-(85)17,84966,089Excalibur36,530-22315,22151,974Monte Carlo26,690-3317,14743,870Circus Circus Las Vegas6,343-(6)14,18720,524MGM Grand Detroit95,820-37229,401125,593Beau Rivage25,764-5132,11057,925Gold Strike Tunica11,028--10,19121,219Other resort operations(83,323)-79,6753,646(2)  Wholly owned domestic resorts486,590-82,491409,861978,942MGM China60,236-307125,205185,748MGM Macau (50%)115,219---115,219CityCenter (50%)(46,029)---(46,029)Other unconsolidated resorts26,719---26,719Management and other operations(4,289)(316)110,7636,159638,446(316)82,799545,8291,266,758Stock compensation(26,912)---(26,912)Corporate3,354,505-(3,495,976)33,555(107,916)$       3,966,039$              (316)$        (3,413,177)$        579,384$     1,131,930 MGM RESORTS INTERNATIONAL AND SUBSIDIARIESRECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)(In thousands)(Unaudited)Three Months EndedNine Months EndedSeptember 30,September 30,September 30,September 30,2012201120122011Adjusted EBITDA$        372,383$        443,931$     1,304,200$     1,131,930  Preopening and start-up expenses(765)-(765)316  Property transactions, net(5,803)(81,837)(97,187)(82,828)  Gain on MGM China transaction---3,496,005  Depreciation and amortization(228,414)(249,520)(700,866)(579,384)Operating income137,401112,574505,3823,966,039Non-operating income (expense):  Interest expense, net of amounts capitalized(275,771)(272,542)(836,436)(812,680)  Other, net(18,889)(26,287)(124,121)(111,551)(294,660)(298,829)(960,557)(924,231)Income (loss) before income taxes(157,259)(186,255)(455,175)3,041,808  Benefit for income taxes2,58579,68026,760212,437Net income (loss)(154,674)(106,575)(428,415)3,254,245  Less: net income attributable to noncontrolling interests(26,485)(17,211)(115,449)(25,917)Net income (loss) attributable to MGM Resorts International$      (181,159)$      (123,786)$      (543,864)$     3,228,328MGM RESORTS INTERNATIONAL AND SUBSIDIARIESSUPPLEMENTAL DATA - HOTEL STATISTICS - LAS VEGAS STRIP(Unaudited)Three Months EndedNine Months EndedSeptember 30,September 30,September 30,September 30,2012201120122011Bellagio   Occupancy %92.7%96.8%94.2%94.7%   Average daily rate (ADR)$232$230$234$226   Revenue per available room (REVPAR)$215$222$220$214MGM Grand Las Vegas   Occupancy %94.1%95.4%94.6%94.3%   ADR$135$129$139$130   REVPAR$127$123$131$123Mandalay Bay    Occupancy %93.4%95.7%92.9%93.5%   ADR$168$175$178$176   REVPAR$157$168$166$165The Mirage   Occupancy %96.4%96.7%95.9%95.8%   ADR$139$140$148$145   REVPAR$134$136$142$138Luxor    Occupancy %91.0%94.6%91.7%91.8%   ADR$86$87$88$90   REVPAR$78$83$81$83New York-New York   Occupancy %94.5%95.3%95.5%94.5%   ADR$108$108$110$108   REVPAR$102$103$105$102Excalibur    Occupancy %91.2%92.4%90.9%90.0%   ADR$71$70$72$72   REVPAR$64$65$65$65Monte Carlo    Occupancy %93.4%97.2%94.9%94.8%   ADR$102$99$103$98   REVPAR$96$96$98$93Circus Circus Las Vegas   Occupancy %83.9%88.1%81.1%76.2%   ADR$52$52$54$54   REVPAR$44$46$44$41 CITYCENTER HOLDINGS, LLCSUPPLEMENTAL DATA - NET REVENUES(In thousands)(Unaudited)Three Months EndedNine Months EndedSeptember 30,September 30,September 30,September 30,2012201120122011Aria$        217,306$        214,347$        638,772$        672,810Vdara20,96920,06065,53255,230Crystals13,53411,34538,99434,229Mandarin Oriental11,2229,06435,94530,309 Resort operations263,031254,816779,243792,578Residential operations3,3995,18616,24920,328$        266,430$        260,002$        795,492$        812,906CITYCENTER HOLDINGS, LLCRECONCILIATION OF ADJUSTED EBITDA TO NET LOSS(In thousands)(Unaudited)Three Months EndedNine Months EndedSeptember 30,September 30,September 30,September 30,2012201120122011Adjusted EBITDA$          52,762$          46,090$        146,552$        157,978  Preopening and start-up expenses(248)-(248)-  Property transactions, net(71,257)(6)(73,336)(53,362)  Depreciation and amortization(91,110)(86,093)(267,262)(271,270)Operating loss(109,853)(40,009)(194,294)(166,654)Non-operating income (expense):  Interest expense - sponsor notes(23,346)(20,092)(67,197)(57,699)  Interest expense - other(42,681)(47,665)(131,649)(142,714)  Other, net8081,129(5,832)(20,566)(65,219)(66,628)(204,678)(220,979)Net loss$      (175,072)$      (106,637)$      (398,972)$      (387,633)CITYCENTER HOLDINGS, LLCRECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA(In thousands)(Unaudited)Three Months Ended September 30, 2012Operatingincome(loss)Preopening andstart-up expensesProperty transactions, netDepreciation and amortizationAdjusted EBITDAAria$         (25,512)$               248$            3,577$          68,879$          47,192Vdara(6,055)--10,3704,315Crystals1,522--6,3107,832Mandarin Oriental(5,156)--4,529(627) Resort operations(35,201)2483,57790,08858,712Residential operations(38,072)-35,690977(1,405)Development and administration(36,580)-31,99045(4,545)$      (109,853)$               248$          71,257$          91,110$          52,762Three Months Ended September 30, 2011Operatingincome(loss)Preopening andstart-upexpensesProperty transactions, netDepreciation and amortizationAdjusted EBITDAAria$         (23,147)$                     -$                     -$          63,566$          40,419Vdara(5,387)--10,1734,786Crystals(648)--6,6195,971Mandarin Oriental(5,782)--4,449(1,333) Resort operations(34,964)--84,80749,843Residential operations(976)--1,198222Development and administration(4,069)-688(3,975)$         (40,009)$                     -$                    6$          86,093$          46,090 CITYCENTER HOLDINGS, LLCRECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA(In thousands)(Unaudited)Nine Months Ended September 30, 2012Operating income(loss)Preopening andstart-up expensesProperty transactions, netDepreciation and amortizationAdjusted EBITDAAria$         (84,697)$               248$            5,563$        200,529$        121,643Vdara(14,664)--31,05616,392Crystals4,183--19,02123,204Mandarin Oriental(12,946)--13,568622 Resort operations(108,124)2485,563264,174161,861Residential operations(39,836)-35,6902,929(1,217)Development and administration(46,334)-32,083159(14,092)$      (194,294)$               248$          73,336$        267,262$        146,552Nine Months Ended September 30, 2011Operating income(loss)Preopening andstart-up expensesProperty transactions, netDepreciation and amortizationAdjusted EBITDAAria$         (57,000)$                     -$                     -$        205,473$        148,473Vdara(15,127)--28,54713,420Crystals(3,037)--20,32217,285Mandarin Oriental(14,968)--13,966(1,002) Resort operations(90,132)--268,308178,176Residential operations(63,044)-52,6242,628(7,792)Development and administration(13,478)-738334(12,406)$      (166,654)$                     -$          53,362$        271,270$        157,978 CITYCENTER HOLDINGS, LLCSUPPLEMENTAL DATA - HOTEL STATISTICS(Unaudited)Three Months EndedNine Months EndedSeptember 30,September 30,September 30,September 30,2012201120122011Aria   Occupancy %88.5%86.6%89.2%87.4%   ADR$192$200$199$201   REVPAR$170$173$178$176Vdara   Occupancy %83.2%83.8%84.4%86.0%   ADR$153$157$159$158   REVPAR$127$131$134$136 SOURCE MGM Resorts InternationalFor further information: Investment Community, DANIEL D'ARRIGO, Executive Vice President, CFO & Treasurer, (702) 693-8895, or ALAN M. FELDMAN, Senior Vice President of Public Affairs, (702) 891-1840, afeldman@mgmresorts.com